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Abstract. Despite the fact that experiences are regarded as key concepts in marketing today, there are different views and interpretations about the content of terms. The main objective of this article is to analyse
the concepts of experience and experiential marketing. Based on the literature review the authors found
that experience marketing is a strategic and a broader term than experiential marketing. We define experience marketing as a strategic and holistic marketing of relevant (and meaningful) experiences, and experiential marketing as a tactical tool that helps to do marketing experientially. At the end of the article a
conceptual model of experience marketing is proposed.
Keywords: experience marketing, experience, experiential marketing, customer experience, value.
Jel classification: D11, M31
sessment refer to lack of clarity in marketing literature with regard to what exactly constitutes an
experience and the conflation of terms associated
with experience marketing. The seminal article
and book Experiential marketing was written by
Schmitt in 1999. In the articles written by Schmitt
(2009, 2010) ten years later the keyword is surprisingly experience marketing.
This article seeks to contribute to the existing
knowledge of experience marketing. The key research questions are: 1) what are experience, experience marketing, and experiential marketing?,
2) what is the difference and relationship between
the terms?, 3) how to conceptualize experience
marketing? The goal of this theoretical article is
based on the analysis of key concepts and earlier
research in the field to propose a conceptual model
of experience marketing.
The structure of the article is as follows. First,
we provide an overview of key concepts of experience and experiential marketing. Second, we examine some theoretical approaches and formation
of experience marketing, and also relationships
between the terms. Finally, we propose the conceptual model of experience marketing to understand the essence of experience marketing and
pave the way for further analysis and research.
1. Introduction
Increasing amount of people are searching for
meaning, happiness, sensations, new forms of fulfillment and core values, which they often find in
market offerings (Fortezza, Pencarelli 2011). Experience marketing is a new approach to marketing
and business. Compared to traditional marketing it
is an innovative and creative approach, and is going to be a major growth area in next years.
Already in 1999 Schmitt declared that we are
in the middle of a revolution that will replace traditional feature-and-benefit (F&B) marketing with
experiential marketing (Schmitt 1999 a). In 1998
Pine and Gilmore (1998) introduced experience
economy as the next economy following the service economy. Experience is the main component
of experience marketing and according to LaSalle
and Britton (2003) and Schmitt (1999 a) it is key
marketing in future. Although experiences are regarded as key concepts in marketing today, there
are mixed views and interpretations about the content of terms. Experiences are seen in different
ways and varying approaches are available. Some
terms are sometimes used as synonyms, for example confusion arises when defining experience
marketing, experiential marketing, and customer
experience management (CEM).
Tynan and McKechnie (2009) in the review
article Experience marketing: a review and reas-
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S. Same, J. Larimo
2. Definitions of experience
As a concept and empirical phenomenon, experience is not as established as other consumer and
marketing concepts, such as choice, attitudes, consumer satisfaction, or brand equity (Schmitt 2010).
Poulsson and Kale (2004) observe that no attempt
has been made to systematically define an experience in marketing terms. The lack of clarity lies in
different ways in which the term can be understood. Tynan and McKechnie (2009) explain that
experience is both a noun and a verb and it is
used variously to convey the process itself, participating in the activity, the affect or way in
which an object, thought or emotion is felt through
the senses or the mind, and even the outcome by
way of a skill or learning. In addition, experiences are even more complicated because there is
a difference between the simple pleasure of an ordinary or mundane experience and the enjoyment
of an extraordinary or flow experience (Car,
Cova 2003). For example flow experiences describe a form of intrinsic motivation and are characterized as states of intense concentration, focus,
and absolute absorption in challenging activity
(Csikszentmihalyi 1990).
Carbone and Haeckel claim to have launched
the experience movement in 1994 (cited in Tynan, McKechnie 2009), but Holbrook and Hirschman wrote already in 1982 an iconic article on the
consumption experience. Thus, almost 30 years
ago marketing researchers discovered the importance of experiential aspects of consumer behaviour. Holbrook and Hirschman (1982) developed a
useful model contrasting the differences between
the information-processing (rational) and the experiential view (irrational).
Car and Cova (2003) confirm that the concept of experience is still ill-defined and in the
field of marketing we must use a typology of
consumption experiences which goes beyond an
ideological view where every experience is extraordinary. Their analysis showed that in the social sciences and philosophy experience is defined
as a subjective episode in the construction/transformation of the individual with, however, an emphasis on the emotions and senses. By experience
Carbone and Haeckel (1994) mean the "takeaway"
impression formed by people's encounters with
products, services, and businesses a perception
produced when humans consolidate sensory information.
Tarssanen and Kylnen (2007) define experience as emotional experience that can lead to personal change, Pine and Gilmore (1999) as memorable events, and Pitknen and Tuohino (2006) as
In summary, experience is a complex and layered construct. There are even more dimensions
Carbone and Haeckel (1994) explain that experience may be good or bad, lasting or fleeting, a
random phenomenon or an engineered perception.
An experience as a noun is something that affects the way you feel or knowledge or skill from
doing, seeing or feeling things. An adjective experiential means based on experience. That stresses the importance of experience as a basis of the
area.
3. Experiential marketing
According to Schmitt, the initiator of experiential
marketing, the framework of experiential marketing has two aspects: 1) five types of experiences,
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4. Experience marketing
According to Leeflang (2011) one of the specific
topics that have not yet received enough attention
is experience marketing.
Experience marketing is generally based on
experience economy theory. Pine and Gilmore
(1998) claim experiences to be the fourth economic offering. They explain the progression of
value from commodities to experiences by showing how experiences differ from goods and services (Table 2). Pine and Gilmore (1999, p. 12)
declare that while commodities are fungible,
goods tangible, and services intangible, experiences are memorable.
Table 2. Economic distinctions (Source: adaptation of
Pine and Gilmore (1998))
Economic
Goods
Services
Experiences
offering
Economy
Industrial
Service
Experience
Nature of
Tangible
Intangible Memorable
offering
Key
Standardized Customized
Personal
attribute
ManuSeller
Provider
Stager
facturer
Buyer
User
Client
Guest
Factors of
Features
Benefits
Sensations
demand
Experience economy (Exponomy) is of increasing focus. Although the concept was born in
the business field in 1998, it has gone beyond its
boundaries to tourism (Leighton 2007), retailing
(Grewal et al. 2009; Verhoef et al. 2009), architecture, sports, branding (Brakus et al. 2009; Gentile
et al. 2007), entertainment and arts (Petkus 2004),
urban planning, hospitality and other fields.
Experience economy is also considered as a
main underpinning for customer experience management (CEM). According to Schmitt (2003), the
term customer experience management represents the discipline, methodology and/or process
used to comprehensively manage a customer's
cross-channel exposure, interaction and transaction
with a company, product, brand or service. CEM is
more like a program (Cantone, Risitano 2011) or
schedule, based on five steps. The CEM strategies
impel the customers involvement at different levels (Gentile et al. 2007): rational, emotional, sensorial, physical, and spiritual.
Walls et al. (2011) define consumer experience as multidimensional takeaway impression
or outcome, based on the consumers willingness
and capacity to be affected and influenced by
physical and/or human interaction dimensions.
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S. Same, J. Larimo
Experience marketing offers engaging, interactive, and entertaining brand experiences. Brakus
et al. (2009) define brand experience as subjective,
internal consumer responses (sensations, feelings,
and cognitions) and behavioural responses evoked
by brand-related stimuli that are part of a brands
design and identity, communications, and environments in which the brand is marketed or sold.
Experience marketing is also related to consumer behaviour theory. Consumer behaviour as a
field has expanded to three dominant specializations (subfields): consumer information processing, consumer culture theory, and behavioural
decision theory (MacInnis, Folkes 2010). These
subfields have all provided consumer insights on
experiences. However, Schmitt (2010) regards that
also two other main marketing disciplines (marketing strategy and marketing models) have also
contributed to experience marketing in addition to
consumer behaviour.
According to Schmitt (2010) the key concepts
of experience marketing are: 1) experiential value,
2) different types of experiences, 3) the distinction
between ordinary and extraordinary experiences,
and 4) experience touchpoints. Consumer behaviour and experience marketing fields are open to
adjoining disciplines, e.g. psychology, economics,
communications, sociology, anthropology, and
culture. These fields may be useful to better understand consumer behaviour and experience marketing.
Stimulus,
marketing mix
Affection
Perception,
values
Environment
Particular experience
(what do you feel?)
Experiential marketing
Meaningful relationship
4.1. Definition
Life situation
Cognition
Affection
Conation
Meaningful experience
(what do you know, feel, want?)
Change
or satisfaction
Behaviour
Value cocreation
Experience marketing
Fig.1. The difference between experience and experiential marketing (Source: adaption of Leppiman, Same
2011)
A customer creates meaning to all he/she perceives. Experience represents a meaningful relationship between a persons perceptional activity
and a life situation, and is of particular significance to the person (Perttula 2007). When the customer experiences something to be important, this
forms his/her life situations consisting of everything he/she is in meaningful relationship (Leppiman, Same 2011). Experiences are formed out of
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meaning), emotional response (emotional experience), and aesthetic pleasure (aesthetic experience).
These experiences influence value co-creation, purchase decisions and behaviour.
At the level of meaning, cognition comes into
play. Desmet and Hekkert (2007) confirm that
contrary to popular belief, an emotion is the result
of a cognitive, though often automatic and unconscious, process.
Offering or stimulus
Elements
of experience
Customer
Interaction
Company (brand,
product, service)
Value to
customers
Experience
and value
co-creation,
(and
behaviour)
Value to
company
Value to
society
Actions and
processes
An experience is important in business and technology because to the mind every economic offering is experienced (Van Doorn 2006). Experience
is broadly speaking an interaction between a company (brand/product/service) and a customer. Experience is shaped by the characteristics of the
customer and those of the product, company or
brand. Desmet and Hekkert (2007) explain that
all actions and processes that are involved, such
as physical actions and perceptual and cognitive
processes (e.g. perceiving, exploring, using, remembering, comparing, and understanding), will
contribute to the experience.
Consumer behaviour is influenced by internal
influences, e.g. demographics, personality, motivation, knowledge, attitudes, beliefs, and feelings. The
behaviour is also influenced by external influences,
e.g. culture, past experience, lifestyle, marketing
mix. Psychological factors include individuals motivation, perception, attitude and belief, while personal factors include income level, personality, age,
occupation, lifestyle, etc. In addition, the experience
is always influenced by the context environment
in which the interaction takes place.
The most important parts of the model (Fig. 2)
are: 1) offering or stimulus, 2) interaction between
the customer and company, 3) experience and
value co-creation, 4) value. We believe these are
the cornerstones of experience marketing.
Hekkert (2006) distinguishes three levels of experience: attribution of meaning (experience of
Context,
environment
Levels of
experience
(meaning, emotional response,
aesthetic pleasure)
Marketing mix
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S. Same, J. Larimo
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